Moody’s rates Viridian notes B2, loan Ba1

Moody's Investors Service said it assigned a provisional B2 (LGD4) rating to Viridian Group FundCo II Ltd.’s €600 million (roughly £468 million) of new senior secured notes due 2020 and a provisional Ba1 (LGD1) rating to Viridian Group Ltd.’s new £225 million super senior revolving credit facility.

Concurrently, the agency affirmed the B1 corporate family rating and B1-PD probability of default rating of the restricted group of companies owned by Viridian Group Investments Ltd. (VGIL).

The outlooks are stable.

This action follows Viridian’s announcement of its proposed refinancing.

Moody’s said the notes rating and affirmation of the corporate family rating takes into account that the reduction in cash interest from the lower coupon of the notes will result in an improvement in interest coverage ratio but also that the refinancing would result in an increase in financial leverage (measured by Net Debt to EBITDA) of the restricted group to circa 5 times from the current position of closer to 4 times.

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